January 11, 2021
The figures are based on data from the Official Charts Company, Futuresource Consulting and Kantar, and show that the home entertainment sector grew by 26% in 2020, bringing the total market value to £3.3 billion.
In a year that saw UK consumers staying at home in the face of the threat from coronavirus, 2020 has seen digital formats make huge gains as audiences have taken advantage of the instant access and huge range of content choice available across the broad range of digital consumption models. Total EST (electronic sell-through, or digital purchase) sales across both film and TV content delivered 14.5% growth year-on-year after a record period of growth during the March lockdown. Spend on TVOD (transactional video-on-demand), supported by shoppers new to the category, saw almost 24% growth.
Kantar reports that the total number of customers buying and renting across the video category grew by 14% between March and November 2020 to 12.9 million as audiences sought flexible access to content across transactional methods.
At the same time, SVOD (subscription video on-demand) services have also grown by 42%. Streaming services now account for 74% of the total market value, with new services joining the market in 2020 such as Disney+, and an expansion in the uptake of existing services such as Netflix or Amazon Prime Video during the first UK lockdown period. Kantar also reveals that 23% of British households signed up to a subscription service during the first quarter and around the time Disney+ launched, and a further 7 and 3.5% of households did so in the following two quarters of the year.
BASE says that the home entertainment market has demonstrated incredible resilience, pivoting to ensure the performance of available content was maximised across all formats and driving a story of catalogue success. Against the backdrop of closure of the cinema estate and the knock-on reduction of new release and Hollywood blockbuster titles, independent studios and distributors worked to fulfil consumer demand for content, resulting in a 30% share of value spend on disc, up from 25% in 2019. Consumers have embraced transactional in all its forms, with the growth of EST as well as an enduring love of catalogue, TV box sets and high value premium physical releases all boding well for continued growth once the new release pipeline reopens in 2021. To access the figures in full, click here.